What HR Needs to Budget for 2026: Compensation Trends & Hiring Costs

ManagementNovember 25, 2025 11:17

💼 What HR Needs to Budget for 2026: Compensation Trends & Hiring Costs

This article is written in English for readers in Vietnam. Vietnamese and Japanese translations are available on our website.

As 2025 draws to a close, Vietnam’s HR and finance leaders are entering one of the most critical planning cycles of the decade.

With salary expectations rising, retention challenges intensifying, and automation reshaping roles, 2026 will demand smarter, data-driven compensation budgeting.

Based on insights from the Reeracoen Vietnam Salary Guide 2025, AON’s Southeast Asia Salary Report, and the Reeracoen × Rakuten Insight APAC Whitepaper, this article highlights the latest pay trends, hiring cost considerations, and budgeting priorities for companies operating in Vietnam.

1. 2026 Salary Growth Forecast

Average Salary Increase: 5–7%

Vietnam’s salary growth is projected to outpace regional averages in 2026, driven by robust FDI inflows and expanding domestic demand.

IT & Technology: +8–10% (strongest growth, especially in AI and data roles)
Manufacturing & Engineering: +5–7% (steady FDI from Japan, Korea, and Singapore)
Finance & Banking: +6% (digitalisation and compliance hiring)
Retail & F&B: +4–5% (moderate recovery, rising urban spending)

(Sources: Reeracoen Salary Guide 2025, AON SEA Salary Report 2025)

Retention Premiums Rising

Mid-level bilingual managers and specialists remain in short supply, prompting employers to offer retention bonuses and skill-based pay adjustments averaging +10%.

2. Total Hiring Costs Continue to Climb

The actual cost of filling a role in Vietnam has increased by 18–22% year-on-year, factoring in salary inflation, replacement costs, and recruitment lead times.

Cost Component	Average Range (per hire)	Notes
Recruitment / Agency Fee	15–20% of annual salary	Higher for niche technical roles
Training & Onboarding	10–15M VND	Includes induction, compliance, and L&D
Equipment & Workspace	5–10M VND	Office set-up, laptop, system access
Lost Productivity (Vacancy Period)	25–30% of monthly output	Based on 45–60 day hiring cycle

A delayed hire or early turnover can therefore cost a company up to 1.5× the position’s annual salary, underscoring the need for retention-focused compensation planning.

3. Key Budget Priorities for HR Leaders in 2026

Re-benchmark Pay for Specialists

Vietnam’s rapid digitalisation means niche roles — like automation engineers, ESG analysts, and bilingual project managers — are underpriced in many salary bands.
Reeracoen’s data shows a 6–8% gap between what companies budget and what candidates expect in these fields.

Invest in Mid-Level Leadership Development

The “middle management gap” continues to be a pressing issue.
Companies that offer leadership pathways and career progression incentives see 30% lower turnover among high-potential employees.

Build Variable Pay Components

Beyond fixed raises, flexible bonuses tied to project success or skill mastery help manage budgets while motivating teams.

Budget for Upskilling & Digital Tools

Allocate 3–5% of payroll for digital training and HR technology adoption — an investment proven to improve productivity and reduce turnover costs.

4. Emerging Trends Influencing HR Budgets

Hybrid Work Cost Efficiency

Companies that maintain partial remote-work models save 8–12% on operations while boosting employee satisfaction.

AI in HR Planning

Automation tools now help HR teams predict attrition and model salary scenarios — allowing smarter budget forecasts and more equitable pay structures.

CSR & Employer Branding as Retention Levers

Reeracoen’s APAC Whitepaper found that employees are 1.6× more likely to stay when they believe their company contributes to social or environmental causes.

5. Practical Steps for Year-End Planning

✅ Benchmark salaries using real market data.

Use Reeracoen’s Salary Guide 2025 percentile ranges (P25–P75) to calibrate 2026 pay bands.

✅ Segment your workforce.

Prioritise critical-skill and bilingual positions that drive business continuity.

✅ Align HR with Finance early.

Involve finance partners in Q4 to secure buy-in for retention and upskilling budgets.

✅ Communicate transparently.

When employees understand how salary decisions are made, engagement scores rise by 20–25%.

🔍 FAQ

Q1. What salary increase should companies in Vietnam budget for 2026?

A 5–7% overall increase, with tech and manufacturing sectors leading the way.

Q2. Which costs are often underestimated in HR budgets?

Training, attrition, and lost productivity during recruitment gaps.

Q3. How can SMEs stay competitive without overpaying?

Offer skill-based bonuses, learning opportunities, and flexible work arrangements instead of only raising base pay.

Q4. Should employers adjust bilingual allowances in 2026?

Yes. The bilingual premium (especially JLPT N1–N2) remains at +10–20% depending on industry demand.

💼 For Employers: [Book a Consultation — Benchmark your 2026 salary budgets and hiring costs with Reeracoen Vietnam’s market data.]

👩‍💼 For Jobseekers: [Submit Your CV — Explore mid- and senior-level roles in Vietnam’s fastest-growing sectors.]

✅ Final Author Credit

By Valerie Ong (Regional Marketing Manager, Reeracoen)
Published by Reeracoen Vietnam — a leading recruitment agency in APAC.

📚 References

Reeracoen Vietnam Salary Guide 2025
Reeracoen × Rakuten Insight APAC Workforce Whitepaper 2025
AON Southeast Asia Salary Report 2025
Vietnam Ministry of Labour (MoLISA) Workforce Report 2025
JETRO Vietnam Business Conditions Survey 2025

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